Money Monday- What I Want Money to Do For Me

     

     I've never understood the mindset of raking in more and more money just for the sake of having more and more money. It is true, money can't buy happiness. However, it's also true that a certain amount of money yields the opportunity to be able to afford things that keep us living life and affording some indulgences that add to the quality of life. I can only speak to my own perspective to where that middle ground is- not amassing wealth or hoarding of money for money's sake, and having enough to live a comfortable life with some creature comforts, experiences, legacy, and bring enjoyment and peace of mind.

    I think most of my readers, give or take a few years, are about in the same age group I am and might be in your retirement planning mode too. I know some of you have made the leap and I like learning from your wisdom and experience on what worked and what you might alter. I want money to do a few things for me. Sitting and growing without boundaries is not one of them. Here's my list for now of what I want our money to do for us now through retirement.

• to last to cover our living expenses proportionate to how we live now regardless of how long we're alive. Of course how we can live at 62 will be different at 92, but I want to know our daily needs are met well.
• used to cover health insurance and expenses at minimally our current coverage 
• be able to still give to people, causes, and organizations that can do good things with our and others money collectively.
• used to give generously to people we love
• be flexible enough that we can hire people with better skills, talents, and vision to get needed projects done that really are beyond our DIY ability. 
• along these same lines, be able to buy higher quality items that last, rather than inexpensive ones that need frequent replacement. 
• be enough to travel, while maybe not at the Ritz, but not requiring hostel stays. (Though I think hostels aimed at older adults might be an interesting experience.)
• pursue hobbies that we might not have time for now, but will post retirement even if they require additional expense or investment. For DH, that's likely golfing and water toys. I really don't know what that might be for me, but want to afford to find out. 

     Those are the things focused on DH and me. Others may scoff completely at this one, but I feel strongly about it. I want my kids to never feel so much financial stress that they don't take calculated changes and new opportunities in their life. Call it the safety net of mom and dad. This does not mean we will pay their bills, and they need to exhaust all means first. But I don't want them ever to have to experience complete destitute and risk of them or their families being homeless or without their basic needs met because they took a chance on a better job, or a self employed business and it didn't pan out. I don't want them to pass on opportunities that are well though tout that have a certain amount of risk or guarantee on a return on the investment either. This safety net needs to be built and maintained without it impacting our own priorities. (This admittedly is an example of privilege I want my kids and future grandkids to have.) 

      I feel like both DH and I had this. Had we really been in a hard place at different places in our life, we had family that no doubt would have been able to let us live with them or provide employment temporarily. (emphasis on temporary) My husband leaving a well paid but dangerous job shortly after DS was born to go to a commissioned base job was a risk we took. Draining our savings to put a  huge down payment on our house because we couldn't get a regular mortgage without doing so, meant close to nothing in the bank should we have had a major expenses elsewhere, was a risk. My going to part time employment and then going back to school, and the high tuition that came with it, were others. This all panned out, but may not have. Health care and being a safety net for our kids is my where I worry the most about the timing of my retirement, right or wrong. 

     What do you want your money to do for you? Do you have parts of your plan that worry you more than others?

Money Monday- Patience With Long Term Accounts

     

     I'm talking to myself, but maybe this helps some of you as well that are entering your final years of earning before venturing into the world of living off the fruits of your prior years labor. I had a slap looking at my 401K from my last job. While it did well enough in 2021, it lost a bunch just in January. Even with the loss, the gains were above what we're planning for the 12 month period, but it's sure hard to see 10's of thousands drop from an account balance. I took a swig of strong coffee and glanced at the whole 12 months. There was a lot of downs and ups over the year. If I fixated on just January, I'd likely spiral into panic. Looking at the whole picture and remembering to have patience calmed my fears.

     Don't we all worry that we've planned well enough? None of us want to retire and live a lower quality life, in fact at least for the first decade and 1/2, I plan on squeezing in so many things we either put off, or enjoyed so much we want to do more. While these adventures won't be at the Ritz, I want comfortable. I don't mind continuing my thrifty ways, but I don't want worry and doubt to fill my mind when I try and sleep. 

     Even though DH is in striking distance, were still playing the long game. It still is important to see fluctuations and pay attention, but without anxiety inducing reactions or over confidence. For me it helps me look at short term savings goals in tandem with 401K's and Roth RA's as part of our overall plans. Cash in hand, money set aside in sinking funds, and not adding debt is assurance to ride through dips in the market value of our retirement portfolio. We have wobbly years-the years between me being 62 and 66 when I am both eligible for Medicare and my pension fully matures. Those are our cash years as I am calling them. This is where we will concentrate on using the Roth, because that was funded with after tax funds, so not subjective to additional taxes. We're focused, hopeful, still investing, in this portion of our overall portfolio. It's subject just like my 401K to the market fluctuations though. This is why a portion of the portfolio has to be actual cash, tying back to  living a good life, but a thrifty life, now and in retirement.